Dani Hernandez has been working in the mortgage business for more than 11 years. In 2006, she started originating loans and moved into underwriting in 2009. By working on both sides of the process, Dani possesses a unique understanding of the mortgage lending process compared to other industry professionals. Dani is currently the head of compliance and underwriting at Newcastle Home Loans.
Your borrower finally found the perfect house! They send you a copy of the executed sales contract and everything is great…until you notice that the window treatments are listed as personal property to be included in the sale. Suddenly, you’re having flashbacks of your underwriter losing their $^!# because the last sales contract you sent included a lengthy list of personal items from the seller’s “Custom Man Cave” to be included in the deal. These are just window treatments though… no big deal… or is it?! Keep reading to find out!
When co-borrower income that is derived from self-employment is not being used for qualifying purposes, the lender is not required to document or evaluate the co-borrower’s self-employment income (or loss). Any business debt on which the borrower is personally obligated must be included in the total monthly obligations when calculating the debt-to-income ratio.
Ask the Underwriter is a regular column for HousingWire's new LendingLife newsletter. It features real questions asked to, and answered by, professional mortgage underwriter, Dani Hernandez. In this edition, Hernandez answers temporary employment income questions.
Question: My borrower owes the IRS approximately $16,000 for tax years 2016 and 2017. They have $20,000 in savings, but were hoping to use that money as a down payment to purchase their first home. Is there a way to get them approved without making them pay off the entire tax debt first or is this a dead deal until it is paid? And the answer is...
The appraisal industry is in the midst of huge disruption as automated valuation models and hybrid appraisal products gain favor with regulators and investors. What does the future hold for appraisers and appraisal companies as they adjust to the new realities of automation?
As Millennials grapple with paying off student loans, their opportunity to buy a home gets pushed further and further into the future. That delay has consequences far beyond individual students — the growing student debt crisis impacts every part of the economy.
There has been a conscious and rapid shift to broaden the use of alternative valuation products for origination. Not every decision needs a $500, full-blown 1004 interior appraisal. And in some markets where appraisers are short in number, the turn times can stretch from days to weeks. What these new alternative — some would say disruptive — valuation products do is enable lenders and servicers to better match the product to the risk by harnessing big data and technology.